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Motor Fuel Distributor License

Before commencing business, on application, a distributor shall first procure a license from the Commissioner permitting him or her to continue or to engage in business as a distributor. Upon approval of the application and bond (see bond requirements below), the Commissioner shall issue to the distributor a nonassignable license which shall continue in force until surrendered or revoked.

Every distributor or dealer, on or before the 25th day of each month, shall file with the Commissioner a report for the preceding month. The report shall be filed even though no fuel was sold or delivered.

Motor Fuel Surety Bond Requirements:

The amount of surety bonds required shall be reviewed annually in September. If the Commissioner retains or reimposes a bond requirement, the amount required shall be the sum of the highest two months’ payment during the preceding year or $1,000.00, whichever is greater, but in no case shall it exceed $700,000.00.

A distributor may request release or reduction of the bond if the distributor has complied with all licensing and reporting requirements for at least the last three consecutive years. If the Commissioner determines that release or reduction of the bond will not unreasonably jeopardize State revenues, the bond shall be released or reduced.  Upon a finding to the contrary, the Commissioner shall retain the bond.